The disclosures herein relate generally to formulating insurance policy deductibles and more particularly to controlling and applying a structure for deductibles for new and renewal policies.
Historically, deductible options vary from state to state, and often do not include special peril deductibles (hurricane, wind/hail) that would be helpful in improving risk mitigation efforts in catastrophe prone areas. An infrastructure that controls the availability, migration and management of deductibles will allow the insurer to implement deductible adjustments using a number of variables, and implement them in the most efficient time and cost effective manner.
Therefore, what is needed is a deductible infrastructure that facilitates the implementation of risk management programs, in order to manage an insurer's catastrophe exposure and minimize the risk of adverse financial impact while continuing to service insured parties in highly exposed areas.